Weak Rupee Value Boosts NRI Remittance

Bangalore: Weak rupee value, which is almost 18 percent lower since last 8 months, has enhanced the Non Residents Indians (NRIs) remittance of funds, reports Mayur Shetty of TNN.

NRIs are taking an advantage of the favorable exchange rate, as the weak rupee value is considerably cheaper to NRIs.

Reuters Market Eye - UBS says that the rupee value could hit 56 to the U.S. dollar, which is a record low since 8 months.

The UBS reports states, (they cite) “prospect of slowing flows on the back of India’s 'severe' deficit drag, the need to 'repair' the country’s balance sheet and regulatory ambiguity that has reached a 'crisis point’,” as stated by Reuters.

As per the remittance flows’ report of World Bank, “remittance flows to developing countries are expected to grow at 7-8 percent annually to reach $467 billion by 2014. Worldwide remittance flows, including those to high-income countries, are expected to reach $615 billion by 2014.”

The report also states that there has been a positive growth in the earlier estimates of flows to India in 2011, that is, by $5.8 billion.